Last Update 03 Dec 25

GTM: Future Revenue Will Depend On AI Demand And Upmarket Execution

Analysts have raised their average price targets on ZoomInfo Technologies by a few dollars to the low to mid teens, citing steady revenue execution, improving tone around upmarket demand, and growing confidence in the company’s AI driven initiatives despite ongoing down market and competitive headwinds.

Analyst Commentary

Street research following ZoomInfo's Q3 results reflects a cautiously constructive stance, with most firms nudging price targets higher into a range around the low to mid teens while retaining mixed ratings. The updates highlight solid execution against tempered expectations, particularly in upmarket accounts, but also underscore that the pace of improvement may not yet justify a full re-rating of the shares.

Bullish Takeaways

Bullish analysts point to an above average top line beat and steady upmarket traction as evidence that ZoomInfo can sustain modest revenue growth despite macro and competitive pressures.
Incrementally higher price targets and commentary about becoming more positive on the growth outlook suggest rising conviction that execution on large accounts and cross sell opportunities can support valuation at current levels.
Improving tone around customer demand, including stability in down market cohorts and better upsell momentum for products like Copilot and Operations, is seen as an early sign that growth could re accelerate if trends continue.
Some research notes emphasize that AI driven offerings and enhanced data products could become meaningful growth drivers over time, providing optionality for multiple expansion if adoption scales.

Bearish Takeaways

Bearish analysts argue that, while Q3 was solid, revenue growth in the mid single digits and only modest guidance raises do not yet justify a major valuation re rating, as reflected in cautious ratings despite higher targets.
Persistent weakness in the down market customer base, slower large customer additions, and mixed upmarket momentum are cited as constraints on a faster growth trajectory and drivers of continued multiple compression risk.
Goldman and other more skeptical voices highlight that sustained revenue acceleration will likely require broader demand stabilization plus clear, measurable traction from AI offerings like Copilot, which is not yet visible at scale.
Concerns also center on relative underperformance potential versus front office software peers until unlevered free cash flow growth and margins inflect higher in tandem with revenue, limiting upside in the near term.

What's in the News

Launched the AI Builder Catalog, a specialized dataset that aggregates verifiable proof of work signals like open source contributions, academic publications, patents, and competition wins to help recruiters identify scarce, high quality AI talent beyond traditional resumes (Key Developments).
Introduced ZoomInfo Copilot Workspace, an AI powered execution engine that unifies revenue workflows across CRM and GTM tools, using AI agents to research accounts, monitor signals, draft outreach, and surface next best actions for sales and customer success teams (Key Developments).
Announced a strategic partnership with Markaaz to create an AI powered B2B data solution that combines ZoomInfo sales intelligence with Markaaz credit and risk data, aiming to deliver an end to end master data platform for prospecting, onboarding, verification, and ongoing monitoring (Key Developments).
Raised full year 2025 GAAP revenue guidance to a range of approximately $1.237 billion to $1.240 billion, reflecting increased confidence in growth versus prior expectations (Key Developments).
Provided fourth quarter 2025 GAAP revenue guidance of $307 million to $310 million, framing near term expectations for top line performance (Key Developments).

Valuation Changes

Fair Value Estimate remained unchanged at $12.35 per share, indicating no material revision to intrinsic value assumptions.
The Discount Rate rose slightly from 9.57 percent to 9.58 percent, reflecting a marginal increase in perceived risk or required return.
The Revenue Growth Forecast eased fractionally, remaining at 3.86 percent, implying essentially stable top line expectations.
The Net Profit Margin edged up slightly, holding at 15.24 percent, signaling a negligible change in long-term profitability assumptions.
The Future P/E Multiple increased marginally, staying at 19.19x, suggesting a nearly unchanged view of the company’s valuation relative to earnings.

Accelerating AI adoption and product innovation are cementing ZoomInfo's platform as essential for enterprise sales teams, supporting durable revenue growth and expanding margins.
Strategic upmarket focus and integrated solutions are driving improved customer retention, higher-value contracts, and operating leverage, positioning the company for sustained profitability.
Heavy reliance on large clients, declining smaller customer base, commoditization risk, rising data regulation, and unproven international growth threaten long-term stability and profitability.

Catalysts

About ZoomInfo Technologies

Provides go-to-market intelligence and engagement platform for sales, marketing, operations, and recruiting professionals in the United States and internationally.What are the underlying business or industry changes driving this perspective?

Accelerating adoption of AI and automation by enterprise sales and marketing teams is driving more organizations to standardize ZoomInfo as their core go-to-market data foundation, demonstrated by record upmarket deals, increased platform embedding, and growing average contract values-factors likely to support durable revenue growth and eventual margin expansion.
Enterprises are prioritizing digital transformation and high-quality, unified data as essential for enabling successful AI initiatives and workflow automation, pushing customers to increase reliance on ZoomInfo's integrated solutions (Data as a Service, Copilot, Go-To-Market Studio), which is strengthening customer retention rates and positioning the company for rising recurring revenues and improved net revenue retention.
Expansion into more sophisticated workflow and analytics tools (beyond simple contact data) is increasing cross-sell and upsell opportunities within existing accounts, as seen by customers doubling their annual spend and the rapid growth in the operations solution, which supports both higher average customer value and sustained top-line growth.
A strategic focus on upmarket customers-who have higher lifetime value, greater stickiness, and significantly higher margins compared to downmarket clients-combined with internal AI-driven efficiency gains (reductions in headcount and resource reallocation) is creating operating leverage and positioning the company for structurally higher net and operating margins over time.
As leading enterprises consolidate their go-to-market tech stacks and seek seamless integration of sales intelligence platforms with CRMs and marketing automation, ZoomInfo's product innovation and early-mover advantage in AI-powered sales tools (Copilot, Go-To-Market Studio) are cementing its indispensability, which underpins long-term growth and provides the foundation for premium pricing and resilience against commoditization, directly benefitting both revenue and margin outlooks.

ZoomInfo Technologies Earnings and Revenue Growth

ZoomInfo Technologies Future Earnings and Revenue Growth

Assumptions

How have these above catalysts been quantified?

Analysts are assuming ZoomInfo Technologies's revenue will grow by 2.8% annually over the next 3 years.
Analysts assume that profit margins will increase from 7.3% today to 15.1% in 3 years time.
Analysts expect earnings to reach $201.1 million (and earnings per share of $0.64) by about September 2028, up from $89.2 million today. However, there is a considerable amount of disagreement amongst the analysts with the most bullish expecting $250.3 million in earnings, and the most bearish expecting $82 million.
In order for the above numbers to justify the analysts price target, the company would need to trade at a PE ratio of 19.3x on those 2028 earnings, down from 37.1x today. This future PE is greater than the current PE for the US Interactive Media and Services industry at 16.9x.
Analysts expect the number of shares outstanding to decline by 7.0% per year for the next 3 years.
To value all of this in today's terms, we will use a discount rate of 9.25%, as per the Simply Wall St company report.

ZoomInfo Technologies Future Earnings Per Share Growth

Risks

What could happen that would invalidate this narrative?

The rapid expansion upmarket and focus on large enterprise customers increases exposure to customer concentration risk, as significant revenue is now dependent on a smaller number of high-value clients; any loss or renegotiation of these contracts could lead to revenue volatility and earnings pressure.
Downmarket revenues are declining significantly (-11% YoY), and there is no clear indication of imminent stabilization, raising concerns about the company's ability to maintain a broad and diversified customer base, which could hamper long-term revenue growth and net margin expansion.
Ongoing investments in AI-powered products and workflow automation heighten the risk of commoditization, as more competitors and open-source alternatives emerge with similar features, potentially eroding ZoomInfo's differentiation, pricing power, and gross margins.
Heightened global privacy regulation (such as GDPR and CCPA) and increasing customer emphasis on first-party data management could curb the availability and utility of third-party business intelligence data, driving up compliance and data acquisition costs, and threatening future product competitiveness, retention, and net income.
International growth prospects remain unproven, with limited commentary or concrete evidence of meaningful traction outside North America; expansion could be hampered by stricter regional data laws, regulatory headwinds, and lack of brand recognition, all of which may materially constrain long-term top-line growth and profitability.

Valuation

How have all the factors above been brought together to estimate a fair value?

The analysts have a consensus price target of $11.653 for ZoomInfo Technologies based on their expectations of its future earnings growth, profit margins and other risk factors. However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of $15.0, and the most bearish reporting a price target of just $7.0.
In order for you to agree with the analyst's consensus, you'd need to believe that by 2028, revenues will be $1.3 billion, earnings will come to $201.1 million, and it would be trading on a PE ratio of 19.3x, assuming you use a discount rate of 9.3%.
Given the current share price of $10.38, the analyst price target of $11.65 is 10.9% higher.
We always encourage you to reach your own conclusions though. So sense check these analyst numbers against your own assumptions and expectations based on your understanding of the business and what you believe is probable.

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Disclaimer

AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.

GTM: AI Initiatives And Upmarket Gains Will Shape Fair Valuation Ahead